@PMOIndia Spending 1.75 lakh crore on farmers is I believe unprecedented in Indian history. Thanks from the bottom of my heart.

With this new found buying power the farmers might jumpstart the economy, this is why this is so powerful @PMOIndia

Even if they spent 50% of what they got buying stuff, that would pump in .875 trillion rupees back into the market
@PMOIndia Clever move this.

I understand that some of the donations were in kind instead of cash, but it would free up buying power in any case @PMOIndia

I believe the opposition is shitting bricks right now

In fact this might find its way into the canons of economic theory, as to how to jumpstart an economy

If you gave n people m amount of money, that would mean each would have n/m amount. Suppose the cost of living is c. Then the amount spent in the economy is nc.

So obviously this can be maximized by making n as large as possible. As long as c < m/n, the farmers will spend c to buy stuff, and the money pumped back would be nc which could be a sizable fraction of m and would rise linearly with n. @PMOIndia

In fact this could be a basis for a theory for a universal basic income for people living under a certain income level. Since the n for such people is large, nc would also be and if one is talking n of the order of hundreds of millions, even if c is modest, it would be gargantuan

So, who knew? The way to jumpstart an economy is via universal basic income for the masses.

And if they are assured that they will get a basic income each month, then they will spend all the money they get, thus pumping back the entire money m back into the economy, if this is not the way to recharge an economy I don't know what is.

This is absolutely the best mechanism to oxygenate the entire vascular system that is the economy

Man, I'm on fire here.